If you need help with back taxes and are thinking about tax debt relief, you are not alone. Last year it was estimated that a huge 19% of the population were unable to pay or had back taxes still owing, that needed to be paid to the IRS.
It may seem like a welcome idea, to help with your repayment problems and buy some time with regard to the authorities. And in most cases, it is a damned good one. Here is what to do if you are one of the 19%.
DON’T BURY YOUR HEAD IN THE SAND
Don’t just hope that it will all just go away, even if the IRS have not yet begun to contact you about your tax debt, sooner or later they will.
It is true that they have launched a slightly more softly-softly approach to people owing back taxes and there are ways around this minefield, but do not mistake this for them having gone soft!
The IRS will always look out for the IRS. Undoubtedly they will find you and when they do, they will take maximum advantage of your ignorance in all matters tax related.
The first thing you need to do is take action now. Be proactive and try and address the problem before it comes running to you and has snowballed.
WHAT HAPPENS NOW
When the IRS has decided that you owe them money, they will begin by writing to you. These will be standard letters, reminding you that you need to pay them. Then, when some time has elapsed, they will send you an assessment letter. This states the period of time in which you have not paid any taxes in.
At this point you should either contact a tax expert or some other qualified advisor to assist with negotiations regarding IRS tax debt relief.
If you are feeling very confident, you could always do this on your own and call them directly to assist you. This is always an option open to you in order to try and sort out your tax problems, however, we know that despite what they say, people end up paying more when they do not use a qualified tax advisor or tax accountant to help them.
Either way you will want to know what your possible options will be next.
PAY IN INSTALLMENTS
If the amount that you owe is less than $50000 then you may be able to arrange to pay back any debt by installments. There will be a one off charge made for this service of $120. It could be worth it, if it is just to halt any other sort of proceedings against you. As long as you do not default on the payments, this could be an option.
PAYMENT IN FULL
Naturally, the IRS want all of your money and want it now. If you are in a position to pay the amount in full, though, we would still consider this as it prevents a build-up of further penalties and charges being added to your debt.
OFFER IN COMPROMISE
If you are going to do this, we do advise that you get professional help with IRS tax debt relief, as negotiating an Offer In Compromise is best left to the experts.
What this basically is, is an offer to pay a lower amount, in lieu of the full amount. This sounds great, if it can be achieved and it frequently is the best news many people have had in years. However, this does usually mean an upfront payment of a rather hefty sum to begin with.